The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-05-15
MERCANTILE INSTITUTION
GAS MAKING.
Facts Concerning What 1t Costs to
Make It.

One of the best kept secrets is the
actual cost of gas making in America.
Racks and thumb screws might, per-
haps ,extort the truth which the severest
cross-examination before legislative
committees has failed to elicit. 1t is the
subject of conjecture and inference like
the nature of comets, the distance of the
fixed stars, the cause OF earthquakes the
origin of the diemo- d. There are GER
tain data by which We arrive at proxi
mately accurate conclusions about the
cost OF gas at the works. No matter
how low we put it, the statement is
never contradicted by any responsible
president or chief engineer OF a gas
company. From this fact we infer that
the outside estimate is always too high
for the reality, and that those who are
concerned in keeping up an Illusion are
well satisfied If we come no nearer the
truth,
We discover, buried in the last issue
of United States consular reports, some
interesting facts and figures bearing Oh
this mysterious subject. They are from
the pen of Consul Schoenhof, who seems
| to have natural appetite for such in
vestigatiOns, and he may have been in
| structed by our government to make
| them. If so he has been put to work
more useful than the routine business
which falls TO the share of our repre-,
sentatives abroad. The details he fur
nishes are so full and precise as to leave
no doubt OF their general correctness.
His inquiry took IN large range, and
is practically exhaustive. 1t relates to
fifteen metropolitan works, nineteen
provincial works, and the immense
works of Stoke which are managed on
g plan somewhat different from the
other Two classes. And here are some
of the concentrated average results. At
Stoke the gas ready for delivery costs
Tin even figures) 30 cents a thousand
70. The metropolitan companies pro-
dute their gas at an expense of 46 cents
and furnish it at 20. The provincial
concerns make gas for 80 cents and
supply it at 5SH. Coal is cheaper in
the Stoke district, being produced from
mines in that vicinity. This is the rea-
son why the gas costs less there than
elsewhere. In London the price of gas
coal is about the same as in New York
At the provincial works generally the
residual products locke, tar and am
monia) sell for more than in any other
market, thus enabling the companies &c
deliver their gas at the low rates men
toned. These by-products are sc
economically obtained and carefully
saved that they yield aside from the
gas, a profit of nearly 8 per cent. on the
capital invested.
Human nature is the same every
where, and the selling price OF gas IL
England would not be as just and
reasonable as We find it but for the
wholesale operation of the sliding cali
law. In granting to the companies TIT
highly valuable franchises they possess
Parliament, in order to protect the pub
lie. fixed the maximum price of gas. 81
far from questioning the power of thu
State to do this, the corporations wer,
only too glad to get concession on suct
terms, and in every case. they yoluntar
lily named their maximum rate, making
it low in order to obtain favors FROM
Parliament The rate of dividend i
also fixed by the same authority-vary
: ing from teI14 per cent. yearly on thu
par value of the shares. Now, when
; ever a company reduces the price OF ga:
to the public, say one penny I'D in som'
charters DelOW the maximum prlCe, II
, is allowed to add u of per cent. to it
! regular dividend for every such reduc
ton. The f1uctuation of prices in the
= interest of the oCsumer and of diVi
dends for the benefit of the stockholoer
!, obey this simple rule as truly as a sta
tionary steam engine conforms thu
speed of its fiy-wheei to the impulses O.
check of the automatic governor" Ii
; other words, the system is perfectly sci
regulating.
! If, in the United States. the cost o
labor at the works is higher than il
England, the adoption OF the paten
t water gas process here goes far Il
counterbalance that one disadvantage
We know of no good reason why ga
should not be sold as cheaply here as II
London. From source which has gu
; entire confidence We learn that 1t is pos
sible 10 manufacture the water gas OF
quality equal TO any furnished in thl
vicinity at less than an average cost o
25cents at the works. Our neighbors Oh
the other side of the East River. VIII
charge 50 for similar article, are fight
two bills in the Legislature -one which
; reduces the charge to SIPS and tn
other to SLIGO 1t is certain that wit
any fair, economical management
might pay a very handsome profit, evel
at the inside rate we have named.-Ne'
| York To7tru1L of Commerce,